Highlights of RBI Monetary Policy meeting

Rohit Kale
/ Categories: Trending, Mindshare
Highlights of RBI Monetary Policy meeting

Ahead of RBI Monetary Policy meeting, Bank Nifty shot up by almost 4 per cent from Monday’s low. Today’s RBI MPC meeting was quite significant, considering the increasing Omicron scare and update on RBI’s stance on the economy.  

In line with the market expectation, Monetary Policy Committee has kept the repo rate unchanged at 4 per cent and maintained its stance as ‘accommodative’. An accommodative stance means the MPC is willing to either lower the rates or keep them unchanged until clarity emerges.  

MPC has also maintained the reverse repo rate at 3.35 per cent and MSF rate at 4.25 per cent.  

RBI Governor Shaktikanta Das in his press conference said that Omicron issue has given rise to fears of further restrictions on travel and economic activity, which has led to "considerable uncertainty on growth dynamics" for the coming months. In view of this, MPC has taken a cautious stance over Monetary Policy.   

"The prospects of economic activity are steadily improving," he said, but added that continued Monetary Policy was needed for a sustained recovery in the economy.  

Price stability remains the cardinal principle of Monetary Policy as it fosters growth and stability, he further said. "RBI's motto is to ensure a soft landing that is well timed," he concluded.  

In view of these key points, Bank Nifty is up by over 500 points today.  

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